Robocalling – Will it Affect your Institution?
Robocalling – Will it Affect your Institution?
The Federal Communications Commission (FCC) passed a new ruling on June 6, 2019 to allow phone companies to block robocalls. A robocall is a phone call that delivers a pre-recorded message utilizing an auto dialer. Along with the FCC, the Senate passed the Telephone Robocall Abuse Criminal Enforcement and Deterrence (TRACED) Act, which makes robocalls illegal. This Act also requires phone companies to adopt anti-robocall technologies.
Prior to this vote by the FCC, the Consumer Financial Protection Bureau (CFPB) was asked to reconsider a proposal to the Fair Debt Collections Practices Act that could increase robocalls exponentially. The CFPB wants to allow debt collectors to send unlimited texts and several phone calls per week to consumer in regard to debt. The CFPB encourages financial institutions, credit unions and debt collectors to ensure their consumers are protected by being aware of important account information, in which robocalls are utilized.
Financial institutions may utilize robocalls to relay information to their customers regarding fraud, privacy and account activity. Based on the new ruling, consumers may not be aware that these communications are being blocked by their phone provider. This, in turn, could lead to overdraft fees, fraud charges and various other fees that could be avoided with communications from the financial institution.
For additional information contact the author at nreifsneider@fosaudit.com.
Natalie Reifsneider | Robocalling - Will it Affect your Institution?